Canada: Manitoba Taxes At 6% To Cover Social Costs Of Cannabis

CBC reports
https://www.cbc.ca/news/canada/manitoba/cannabis-retailers-manitoba-social-responsibility-fee-1.4917349
For now, the government pegged the tax at six per cent of a retailer’s gross revenue from selling recreational cannabis.
That percentage can change if social costs are higher or lower than expected, Cullen said.
“It can go as high as the government wants it to go,” he said.
“We’re trying to [find] balance here,” Cullen added. “We don’t know what the costs will be. That’s why we’re trying to monitor the costs.”
He said the expected legalization of cannabis edibles from the federal government may add to the province’s expenses next year.
The Progressive Conservative government revealed its intention to collect the tax this summer. It’s necessary, the government said at the time, because the various health, safety, education and enforcement implications of legalized cannabis fall squarely at its feet.
He told reporters he couldn’t estimate how much revenue the province expects to take in from the fee.
‘Sky isn’t going to fall’
After all the public hand-wringing over the legalization of recreational cannabis, Cullen said the province has had little to worry about.
Manitoba has not experienced the same product shortages as other jurisdictions and policing agencies have not noticed a massive spike in work, he said.
“We had this discussion before, especially with the police authorities. They’re saying, ‘Listen, people are already using cannabis. The sky isn’t going to fall on Oct. 17,’ and I think that’s the reality,” he said. “Manitobans are just dealing with it.”


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